Echo Polska Properties (EPP), a company jointly owned by Echo Investment and South Africa’s Redefine Properties, is aiming to list on the Luxembourg Stock Exchange in August followed by a listing on the Johannesburg Stock Exchange in September.
'EPP’s listing on the LuxSE and the JSE is anticipated to provide it with significantly improved access to expansionary capital and provide existing and future shareholders with an opportunity to invest in a dynamic and highly-attractive economy,' EPP's CEO Hadley Dean said.
The value of EPP’s initial portfolio as at 30 June 2016 was €1.2 bn, with retail properties comprising 78% of the initial portfolio by market value.
EPP currently owns six office and 10 retail properties with a gross leasable area (GLA) totalling 446,400 m2. The buildings are located in major cities across Poland, and were all built by Echo Investment. Dean said the fund has the potential to double in size over the next two years, in part due to some potentially significant investment opportunities available to the company.
EPP has a 25% development profit participation in and has also secured the right of first offer from Echo Investment to purchase seven properties (known as ROFO projects) with a total GLA of approximately 200,000 m2. The ROFO projects are at various stages of construction and are set to be completed between 2016 and 2018.
Poland well-placed to weather Brexit storm
Dean said Poland was well-placed to weather the storm of any market volatility, with opportunities for inexpensive space a positive outcome flowing from Brexit for Poland.
'Big banks are actively seeking more space for their back offices now, so Poland is set to benefit hugely by Brexit as the banks are looking to snap up office space that is almost 60% cheaper than in London. Moreover, they stand to benefit immensely from the Polish skill sets and lower human resources costs,' he said.
Poland is the largest economy in Central Europe and was the only country in Europe to avoid recession during the 2008 financial crisis, mainly due to its own currency, strong domestic market, independent central bank with a solid track record and a conservative banking system.
Echo Investment is one of the leading investment and development companies in Poland. It carries out investments in four main sectors of the real estate market: residential, retail, offices and hotel properties. It has been listed on the Warsaw Stock Exchange since 1996.
In 2015, Echo Investment SA joined the capital group of Griffin Real Estate – Oaktree – Pimco.
Redefine Properties Limited is a South African REIT and s one of the leading companies listed on the Johannesburg Stock Exchange. It manages the assets worth 65 billion ZAR (€4 bn). The company has been quoted on the Johannesburg Stock Exchange since 2000.
